New affordable homes to be built in Devon under Government deal

UP TO 186 new affordable homes are set to be built in Devon following a deal announced by the Government’s housing minister.

Thousands of affordable homes are expected to be built across the country under the multi-million pound deal announced by Kris Hopkins.

Thirteen housing associations will receive a share of £208million in loans, offered on the best rate ever achieved, to help deliver 4,800 new affordable homes.

They include up to 186 new affordable homes in Exeter, up to 652 in London, up to 138 in Sheffield, up to 136 in Bradford, and up to 264 in Bedfordshire.

The scheme will also extend to Scotland, where 147 homes will be built in Glasgow, and Wales, where 329 affordable homes will be built.

The agreement forms part of the Affordable Housing Guarantees Scheme, delivered by Affordable Housing Finance, part of The Housing Finance Corporation.

Through the scheme the Government uses its strong economic record to guarantee and unlock up to £3.5billion of cheaper debt for Affordable Housing Finance, enabling it to lend this on to housing associations to build new homes to rent for families in need.

Affordable Housing Finance has just issued its first bond to raise the funding for the schemes, worth £208million and priced at 3.76 per cent — the lowest priced bond in the affordable housing sector’s history.

Thirteen housing associations will have access to this new funding. Taken together with around £250million from an existing European Investment Bank loan also guaranteed by Government, these housing associations will deliver around 4,800 new affordable homes.